Wednesday, February 7, 2024
The overall market is currently experiencing high macro volatility.
Some of the largest moves in the market today include: Nasdaq 100 Index (US) has experienced a move of +0.5%. S&P 500 Index (US) has experienced a move of +0.3%.
China’s foreign exchange reserves fell slightly to USD 3.219 trillion in January, less than expected despite a stronger dollar and increased gold holdings.
French private sector payroll employment stagnated in Q4 after eleven quarters of growth, with job losses primarily seen in market services and construction but gains noted in the industrial sector.
In energy news, U.S crude oil inventories rose by 674 thousand barrels last week against expectations for a larger increase; this comes as Middle East tensions threaten European supply routes causing concern over potential disruptions that could affect global market stability.
Asian stocks edged higher amid regulatory pledges from China to stabilize their markets while investors anticipate policy cues from Beijing.
Market attention is also directed towards upcoming speeches by Federal Reserve officials which may provide insights into future interest rate decisions amidst inflationary pressures discussions.
AI-generated summaries of notable premarket ETF moves:
INVESCO QQQ TRUST SERIES I | QQQ $429.58 +0.5%
Invesco QQQ Trust Series I’s price increased by +0.4% due to a reversal of cautious sentiment on U.S. stocks by J.P. Morgan, which now has a “tactically bullish” stance on U.S equities (SPY) (QQQ). This shift is driven by strong earnings from mega-cap tech companies and an economy that continues to grow above trend with no signs of slowing down in the near-term.
The top contributors to the ETF QQQ’s return are AAPL (+0.7%), ADP (+0.1%), and WBA (+0.2%). Notable news associated with AAPL includes Rubén Caballero’s departure from Microsoft potentially impacting their future direction in mixed reality and AI development, as well as rumors suggesting improvements in spatial video recording capabilities on the upcoming iPhone16 along with Apple Vision Pro headset integration.
VANGUARD MID-CAP ETF | VO $230.23 -0.6%
The negative performance of Snap Inc (SNAP), which contributed to the ETF’s return, is a potential explanation for this movement. SNAP reported Q4 revenue falling short due to Middle East conflict impacting growth; however, positive factors include adjusted EPS beating estimates and an increase in daily active users.
AI-generated summaries of notable premarket stock moves:
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(Even if you don’t have an account, you can still see real-time summaries of the top 6 most unusual asset moves at the moment)
Snap Inc | SNAP $12.14 -30.8%
Communication Services, Interactive Media & Services
Snap Inc’s stock price has plummeted -30.8% since the previous close due to disappointing Q4 revenue of $1.36 billion, falling short of expectations and leading to a 31% decline in share price after-hours. The company provided weak guidance for Q1 with expected revenue between $1.10 billion and $1.14 billion, projecting an underlying loss that was worse than anticipated by analysts.The competition from larger tech companies like Meta (formerly Facebook) and YouTube, along with challenges such as Middle East conflict impacting ad business performance contributed further to investor concerns around profitability moving forward.Snap remains focused on improving its direct-response advertising platform but multiple brokerages reduced their PTs on SNAP shares following earnings miss.Investor confidence appears shaken despite some positive aspects like beating EPS estimates & reporting progress made with ad platforms while surpassing user base consensus figures.
Enphase Energy Inc | ENPH $118.13 +18.3%
Information Technology, Semiconductor Materials & Equipment
Enphase Energy Inc’s stock has risen +17.8% since the previous close due to BMO Capital raising its price target, despite reporting slightly lower earnings and revenue in Q4. The company showed confidence in improving demand for products by mid-2024, leading to optimism about a bottoming market for solar energy stocks. Enphase’s performance outperforms sector peers.
Ford Motor Co | F $12.74 +5.7%
Consumer Discretionary, Automobile Manufacturers
Ford Motor Co’s stock price rose 5.9% due to better-than-expected Q4 earnings, with higher EPS of $0.29 and revenues of $43.2B surpassing estimates.The company expects hybrid sales to increase by 40% in FY24 and emphasized its EV strategy.Ford plans to pay a dividend & forecasts adjusted EBIT for 2024 between $10-$12 billion.This positive news has contributed to Ford outperforming its sector peers recently.
Cognizant Technology Solutions Corp | CTSH $74.15 -5.9%
Information Technology, IT Consulting & Other Services
Cognizant’s stock price declined significantly (-7.3%) following the company reporting higher than expected Q4 earnings per share ($1.18 vs $1.04) and revenues in line with expectations ($4.8B). However, their guidance for Q1 2024 revenue range was slightly lower than expected at $4.7- $4 .8B.The market context suggests that Cognizant may be underperforming its sector peers, contributing to the downward movement in its stock price.
Yum China Holdings Inc | YUMC $42.89 +14.9%
Consumer Discretionary, Restaurants
Yum China Holdings Inc’s stock has surged +14.9% since the previous close after reporting strong Q4 earnings, beating revenue expectations and announcing plans for buybacks in 2024 and new store openings in China this year. Analysts highlight higher profitability and dividend increase as key highlights of the quarter. However, flat same-store sales growth suggests potential challenges with foot traffic before expanding further locations.